BILL NUMBER: AB 790	CHAPTERED  09/21/99

	CHAPTER   443
	FILED WITH SECRETARY OF STATE   SEPTEMBER 21, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 21, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 7, 1999
	PASSED THE SENATE   SEPTEMBER 3, 1999
	AMENDED IN SENATE   AUGUST 24, 1999
	AMENDED IN ASSEMBLY   APRIL 21, 1999
	AMENDED IN ASSEMBLY   APRIL 7, 1999

INTRODUCED BY   Assembly Member Honda

                        FEBRUARY 24, 1999

   An act to add and repeal Article 1.5 (commencing with Section
7063) of Chapter 8 of Part 1 of Division 2 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 790, Honda.  Sales and use tax.
   The Sales and Use Tax Law imposes a tax on the gross receipts from
the sale in this state of, or the storage, use, or other consumption
in this state of, tangible personal property.  The sales taxes due
under these provisions are generally the obligation of the seller of
the personal property.  The seller must file a return with the State
Board of Equalization and pay all taxes due.
   This bill would require the board to make publicly available each
quarter a list of the 12 largest tax delinquencies in excess of
$1,000,000.  The quarterly list would contain specified identifying
information about the delinquencies.  The board would be required to
remove certain delinquencies that meet specified criteria within 5
business days, including among others those where payment
arrangements have been made or a bankruptcy proceeding has been
initiated.
   This bill would repeal these provisions on January 1, 2005.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Article 1.5 (commencing with Section 7063) is added to
Chapter 8 of Part 1 of Division 2 of the Revenue and Taxation Code,
to read:

      Article 1.5.  Public Disclosure of Tax Delinquencies

   7063.  (a) Notwithstanding any other provision of law, the board
shall make available as a matter of public record each quarter a list
of the 12 largest tax delinquencies in excess of one million dollars
($1,000,000) under this part.  For purposes of compiling the list, a
tax delinquency means an amount owing the board which is all of the
following:
   (1) Based on a determination made under Article 2 (commencing with
Section 6481) or Article 3 (commencing with Section 6511) of Chapter
5 deemed final pursuant to Article 5 (commencing with Section 6561)
of Chapter 5, or that is "due and payable" under Article 4
(commencing with Section 6536) of Chapter 5.
   (2) Recorded as a notice of state tax lien pursuant to Chapter 14
(commencing with Section 7150) of Division 7 of Title 1 of the
Government Code, in any county recorder's office in this state.
   (3) For an amount of tax delinquent for more than 90 days for
which the person has received tax or tax reimbursement, including any
additions, penalties, or interest.
   (b) For purposes of the list, a tax delinquency does not include
any of the following and may not be included on the list:
   (1) A delinquency that is under litigation in a court of law.
   (2) A delinquency under which the person has filed a petition for
redetermination.
   (3) A delinquency for which payment arrangements have been agreed
to by both the taxpayer and the board and the taxpayer is in
compliance with the arrangement.
   (4) A delinquency under which the taxpayer has filed for
bankruptcy protection pursuant to the United States Bankruptcy Code.

   (c) Each quarterly list shall, with respect to each delinquency,
include all the following:
   (1) The name of the person or persons liable for payment of the
tax and that person's or persons' last known address.
   (2) The amount of delinquency, including any applicable interest
or penalties.
   (3) The length of time for which payment has been delinquent.
   (4) The type of tax that is delinquent.
   Prior to making a tax delinquency a matter of public record as
required by this section, the board shall provide a preliminary
written notice to the person or persons liable for the tax by
first-class mail, return receipt required.  If within 30 days after
receipt of the notice of receipt, the person or persons do not remit
the amount due or make arrangements with the board for payment of the
amount due, the tax delinquency shall be included on the list.
   (d) The quarterly list described in subdivision (a) shall include
the following:
   (1) The telephone number and address of the board office to
contact if a person believes placement of his or her name on the list
is in error.
   (2) The aggregate number of persons that have appeared on the list
who have satisfied their delinquencies in their entirety and the
dollar amounts, in the aggregate, that have been paid attributable to
those delinquencies.
   (e) As promptly as feasible, but no later than 5 business days
from the occurrence of any of the following, the board shall remove
that taxpayer's name from the list of tax delinquencies:
   (1) Tax delinquencies for which the person liable for the tax has
contacted the board and resolution of the delinquency is being
arranged or has been arranged.
   (2) Tax delinquencies for which the board has verified that an
active bankruptcy proceeding has been initiated.
   (3) Tax delinquencies for which the board has verified that a
bankruptcy proceeding has been completed and there are no assets
available with which to pay the delinquent amount or amounts.
   (4) Tax delinquencies that the board has determined to be
uncollectible.
   (f) A person whose delinquency appears on the quarterly list, and
who satisfies that delinquency in whole or in part, may request the
board to include in its quarterly list any payments that person made
to satisfy the delinquency.  Upon receipt of that request, the board
shall include those payments on the list as promptly as feasible.
   (g) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2005, deletes or extends
that date.
